The international agency Moody’s following the decline of Russia’s credit rating downgraded seven largest financial institutions in Russia. This is stated in the agency report, published in the Monday, October 20.
The list includes Sberbank, VTB, Gazprombank, the Agricultural Bank, the Agency for Housing Mortgage Lending, Vnesheconombank, and Alfa Bank. The outlook on the long-term ratings of these banks remains negative.
His decision to Moody ‘s explain the decrease in the ability of the Russian government to provide, if necessary, support the banking system. The agency noted that the improvement in the ratings have fallen to the list of financial institutions in the near future is unlikely, and did not rule out further downgrade to a deterioration in the credit rating of Russia.
October 18, Moody’s downgraded the credit rating of Russia on one notch – from Baa1 to Baa2. The reasons for the downgrade were named slowdown in the medium term, economic growth in Russia and the ongoing crisis in the Ukraine, which impact on the Russian economy in the form of sanctions, including restrictions on the largest banks and the key companies of the defense and energy industry.
In how analysts said Moody’s, influence on the situation have low oil prices, continued capital flight and the reduction of foreign exchange reserves of the Central Bank of the Russian Federation, as well as reducing the confidence of investors, the fall in domestic demand and difficulties in accessing borrowers to international credit markets.
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